Rate Hike Fears Rise Amid Stubborn Inflation

Australia's inflation remains stubborn, prompting fears of another interest rate rise. Reserve Bank governor Michele Bullock warned that the central bank is prepared to raise rates again if needed.

Employment and Workplace Relations Minister Amanda Rishworth defended the Albanese Government's handling of the economy, saying 'we are doing what is in our power to support Australians.'

Rishworth pointed to recent Budget measures aimed at boosting productivity, including investment in skills and permanent free TAFE. However, Nationals Senate leader Bridget McKenzie accused Labor of driving up spending while failing to tackle inflation.

Bullock's warning comes ahead of key inflation data due to be released on Wednesday, with economists expecting underlying inflation to remain above the Reserve Bank's target range.